{"id":1201,"date":"2023-06-06T10:00:00","date_gmt":"2023-06-06T09:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/accountancy\/?p=1201"},"modified":"2023-05-30T09:35:16","modified_gmt":"2023-05-30T08:35:16","slug":"reduce-your-business-energy-costs-and-improve-your-profit-margin","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/accountancy\/reduce-your-business-energy-costs-and-improve-your-profit-margin\/","title":{"rendered":"Reduce your business\u2019 energy costs and improve your profit margin"},"content":{"rendered":"
There are numerous fluctuating costs to consider when running a business. These soon add up if left unchecked, causing a serious dent in your profit margin.<\/p>\n
The recent increase in energy prices is one cost that\u2019s caught many of our clients off guard. Those in the manufacturing, hospitality, and retail sectors have been most affected, with some experiencing a 100-200% increase on the price of energy compared to this time last year.<\/p>\n
When you\u2019re suddenly faced with energy bills nearly three times higher than you\u2019ve budgeted for, those \u2018hidden\u2019 costs become all too apparent. Adapting your approach to managing fluctuating energy prices could be the difference between making a profit or a loss for some businesses.<\/p>\n
But do you know how to find the best deals for your industry, and who to contact to action savings?<\/p>\n
Energy cost management <\/strong><\/p>\n If you\u2019re at all in doubt, seeking advice from a recommended energy consultant can reaffirm that you\u2019re on the right path. They can also point you towards areas of improvement, and once identified, offer support in helping reduce costs for your business.<\/p>\n At CTT Accountancy, we\u2019ve teamed up with partners SeeMore Energy, to give our clients strategic insight into their energy bills and find ways to help them minimise the impact of the energy crisis while managing costs more effectively.<\/p>\n Common costly mistakes<\/strong><\/p>\n \u201cBy looking at their energy data, which profiles times and dates of usage in a clear way, businesses can identify patterns and trends in energy use,\u201d says SeeMore Energy director, Craig Watson.<\/p>\n \u201cAny business that operates 24\/7, particularly those within the manufacturing or hospitality sectors, can usually find a few quick wins to improve efficiency with good housekeeping, like the effective shutdown of machinery that\u2019s not being used,\u201d he says. \u201cMore intensive energy users should regularly audit the equipment and processes to ensure no energy is being unnecessarily wasted.\u201d<\/p>\n \u201cAt SeeMore Energy, we create a simple dashboard to showcase and evidence periods where energy is being used most, with averages and trends. This allows business to zone in and focus on discussing areas for improvement that will have the most impact,\u201d he adds.<\/p>\n A proactive approach to cost saving<\/strong><\/p>\n \u201cOne of the most common mistakes businesses make with managing their energy is failing to engage with the market early enough, to sound out what renewal options might look like,\u201d Craig reveals.<\/p>\n \u201cEarly engagement to create a more strategic approach is key to managing the impact energy price increases could have on most businesses.\u201d<\/p>\n <\/p>\n SeeMore Energy\u2019s advice for reducing energy costs:<\/strong><\/p>\n Since working with SeeMore Energy, CTT Accountancy has negotiated new deals for both gas and electricity, achieving a 30% saving per year for electricity and 35% on gas.<\/p>\n <\/p>\n\n